New deal for the naysayers.... Chester Hill Sydney
- Thread starter Nathan
- Start date
The risk i belive is 0 as it is so so cheap. there is so much upside with very little downside... always is what ifs, however this is the risk of any purchaser. The purchaser obviously holds the risk on this one, but it is minimal as terms are negotiated where it is finished by settlement and you have products which are first class.
All due dilligance is done when doing deals, there is no option for what if's, as things need to roll smoothly. if deal doesnt look top shelf deal doesnt get done, it gets left for the birds to pick at...
All due dilligance is done when doing deals, there is no option for what if's, as things need to roll smoothly. if deal doesnt look top shelf deal doesnt get done, it gets left for the birds to pick at...
Hi Nathan, I somehow think that no matter how much of your success has been due to confidence born of ignorance, that won't last long.........
because you are very quickly becoming not ignorant.
Feel free to answer or ignore the questions below:
- how do you get your cut? part up front comm? % of final sale?
- are you doing project management? looking after renos?
- where was the termite source for this duplex?
because you are very quickly becoming not ignorant.
Feel free to answer or ignore the questions below:
- how do you get your cut? part up front comm? % of final sale?
- are you doing project management? looking after renos?
- where was the termite source for this duplex?
Hey WW,
Thanks for the questions...
I just source the properties for others for a small fee.. its win win...
My deals i do on my own i do on my own, seperate to these... its a case by case scenario.
However I am backed by team of professionals whom have been carrying out these projects since adam was a boy
I guess my main point of the thread was to show that these deals are out there for anyone and to offer some success stories of what is happening @ ground zero in todays market.
The termites were disclosed via the agent as it was a department body selling this stock...
Thanks for the questions...
I just source the properties for others for a small fee.. its win win...
My deals i do on my own i do on my own, seperate to these... its a case by case scenario.
However I am backed by team of professionals whom have been carrying out these projects since adam was a boy
I guess my main point of the thread was to show that these deals are out there for anyone and to offer some success stories of what is happening @ ground zero in todays market.
The termites were disclosed via the agent as it was a department body selling this stock...
Sounds amazing.
$40k per year rent. That's $769 per week on a $650k property. No offense, but hard to believe.
How do you know it will sell for $650k?
How long before settlement, renos completed and resale?
Is this based on current sold prices for similar properties in the immediate area?
Hey Marc,
True, 769 is a lot....
However its 2 x duplexes, which are working on a fully renovated product which should archive $380-420per week each side.
Figures are based on recent sales and homes currently on the merket.
Settlement is 28 days.
Reno should take no longer then 28 days. it will settle and be almost a saleable item by settlement
True, 769 is a lot....
However its 2 x duplexes, which are working on a fully renovated product which should archive $380-420per week each side.
Figures are based on recent sales and homes currently on the merket.
Settlement is 28 days.
Reno should take no longer then 28 days. it will settle and be almost a saleable item by settlement
Sorry guys, am i missing something here. I could go out this week and buy 10 dodgy properties in non descript areas and feel great about it.
Then in a year or 2 we could be in the middle of a recession, in a huge post FHBG slump, 9% interest rates, 10% unemplyment yada yada and then what?
Even if the above doesnt eventuate. There is no great achivement in buying or just owning property. Just about anyone can do that. The acheivement is in the RESULTS.
Is this the new investing black?
This is not negativity, its investing reality and experienced investors on here should know that. To the others, you'll realise it at a later stage of your inevsting journey. If you dont go under first. (and i hope not)
Then in a year or 2 we could be in the middle of a recession, in a huge post FHBG slump, 9% interest rates, 10% unemplyment yada yada and then what?
Even if the above doesnt eventuate. There is no great achivement in buying or just owning property. Just about anyone can do that. The acheivement is in the RESULTS.
Is this the new investing black?
This is not negativity, its investing reality and experienced investors on here should know that. To the others, you'll realise it at a later stage of your inevsting journey. If you dont go under first. (and i hope not)
I see it this way Evan......
IF this property can sell for what Nathan says, then it has been a good value add....not a passive investment. Value adding is active investment, not passive, and I respect the risk taken and skill set used with active investment much more than passive investment.
The building was in a state that most of the market didn't have the know-how, energy, or inclination to restore to something more desireable to live in. Further, much of the market is frozen with fear about further softening.
I think if Nathan's reno contacts can do an honest job, and the owner can get said price for the property, then Nathan has been savvy in identifying a market inefficiency.
That inefficiency has two aspects
- FHBs underprice low end property that requires trade skills to renovate due to their ignorance, impatience, laziness, or lack of funds and time.
- other investors allowed fear and uncertainty to misprice this opportunity. Their appetite for risk did not allow them to reap the potential reward of this deal.
Yes the market might come down significantly within a year or three. But that is more the fault of the govt, the RBA, the banks, property spruikers, and all property buyers who contributed to forming a bubble in the first place, and now are doing all they can to stop the bubble from collapsing.
Personally, I think the only solution is for property prices to revert to the long term mean relationship with median wages (not household income). However, the govt is obviously trying to spread that pain out over a decade or more.
Evand,
This property is being fliped - the purchaser won't be holding it, it will be back on the market with in 8 weeks - no need to worry or try to predict what is going to happen in 2 years.
(Nathan got in before me)
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Yeah heaps!
you make me laugh!
Thats a funny reply coming from you sparky.
I know what the situation is. Lets just see how it turns out. As they say, the proof will be in the pudding.
I know what the situation is. Lets just see how it turns out. As they say, the proof will be in the pudding.
Ok just an update.....
We have just started works on these yesterday.
I have attached some before picks for reference so you can see the damage.
For under $60k for total project we will have these fully transformed. I will post more pics shortly and we will have update on next tuesday catchup @ Parramatta Rydges.
We have just started works on these yesterday.
I have attached some before picks for reference so you can see the damage.
For under $60k for total project we will have these fully transformed. I will post more pics shortly and we will have update on next tuesday catchup @ Parramatta Rydges.
